New York proposes ‘BitLicense’ rules for companies that buy and sell virtual currency

18

Jul

2014

The New York Department of Financial Services (DFS) has released a copy of proposed codes, rules, and regulations for companies that buy and sell bitcoin and other virtual currencies roughly a year after the agency announced an inquiry into regulating bitcoin. The proposed rules apply to businesses that buy, sell, transfer, store, or maintain custody or control of customers bitcoins, as well as companies that convert fiat currency to virtual currency on behalf of merchants. They will also apply to companies that convert virtual currencies into other types of virtual currencies, as well as issue virtual currency. They do not apply to bitcoin miners, the programmers who maintain the bitcoin network in exchange for virtual currency.